Low EU growth rate and risk of deflation, says minister

(AGI) Rome, Dec 1 - Signs of recovery are weak and price swingsare worrying, Italy's Minister of Economy and Finance PierCarlo Padoan told a Senate gathering on the occasion of theConference of Parliamentary Committees for Union Affairs.Speaking to representatives of the 28 European Union (EU)countries, Mr Padoan said the EU was struggling to exit aprolonged period of recession, with weak but clear signs ofrecovery, and called on Europe to focus its policies on growthand employment. There is no magic wand, but a raft of budgetand structural reform policies could kick-start the

(AGI) Rome, Dec 1 - Signs of recovery are weak and price swingsare worrying, Italy's Minister of Economy and Finance PierCarlo Padoan told a Senate gathering on the occasion of theConference of Parliamentary Committees for Union Affairs.Speaking to representatives of the 28 European Union (EU)countries, Mr Padoan said the EU was struggling to exit aprolonged period of recession, with weak but clear signs ofrecovery, and called on Europe to focus its policies on growthand employment. There is no magic wand, but a raft of budgetand structural reform policies could kick-start the Europeaneconomy. Europe is at a crossroads, needing to decide whetherto continue along an inadequate growth path or take majordecisions on embarking on more sustained growth paths. The EUshould work towards bolstering capital market union and solidand achievable forms of fiscal union, with potential cessionsof sovreignty. These issues are crucial for a credible prospectof wellbeing and employment in Europe. The fall in investmentneeds to be reversed by stimulating demand, stimulating supplyand exploiting opportunities created by widespread structuralreform. Lack of growth and the dramatic employment situationare not the only concerns, there is also the risk of deflation.The alarming price trend shows there is a lack of demand andsupply throughout Europe, with scant opportunities for jobcreation, evidencing a high risk of deflation, which wouldfurther hamper any job creation efforts. (AGI) . .